LONDON (dpa-AFX) - Keller Group plc (KLR.L), on Wednesday, said it acquired RECON Services Inc. for an initial cash consideration of US$23 million, and an expected earn-out of US$15 million relating to certain future contract wins.
RECON is a geotechnical and industrial services company headquartered in Houston, Texas, USA. The acquisition would be funded from Keller's existing borrowing facilities.
Keller noted that the acquisition of RECON is in line with the Group's strategy to be the preferred international geotechnical specialist contractor focused on sustainable markets and attractive projects.
The company expects the acquisition to be earnings accretive in the first full year of ownership as RECON's revenue begins to return to more normal levels of activity and as the operational benefits of integrating the business develop, with the additional potential for new contract awards given the significant pipeline of new projects projected by the petrochemical sector in the region.
Michael Speakman, Chief Executive of Keller, said, '...This timely acquisition is strategically aligned to our objective of increasing Keller's market presence in our chosen local markets, and leveraging the synergy opportunities available as a consequence of being integrated into the Keller Group.'
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